Dynamic changes in the Memphis class A commercial sector made headline news in 2016. Behind the scenes, there is plenty going on in the secondary and tertiary markets where more small investors will be going during 2017.
Exercise and fitness are trending across the country and with it brings expansion in Memphis. The International Health, Racquet and Sportsclub Association estimates in 2015, health clubs worldwide pulled in $81 billion with 151.5 million members visiting nearly 187,000 clubs. The United States led the way with 55 million members going to 36,180 clubs.
In Memphis, Planet Fitness plans to build a 20,000 square foot fitness center at the location of a long closed bowling alley. Earlier this week, a building permit valued at $3.8 million was applied for. The fitness club plans to open by October 2017.
LA Fitness already operates seven fitness centers in the Memphis area. Currently a lease is in work for a new location in Poplar Commons, on the eastside of Memphis.
As a tourist destination, it’s no surprise that Boutique Hotels are either sprouting up or planned for downtown. Hotel Napoleon opened this past autumn in the historic Scimitar Building at Third and Madison. A Georgia-based company bought the Econolodge at 22 S. Third for nearly $6 million this month with plans to convert it into a boutique hotel. According to Memphis lodging industry consultant Chuck Pinkowski of Pinkowski & Co. Wessman Holdings LLC, a west coast developer, intends opening a downtown 62-unit hotel with two restaurants by the end of 2017. Overall, more than a half dozen smaller unique hotels are anticipated for downtown.
These are only a few of the many secondary and tertiary market plans for downtown. The city sees reconstruction as key to the city’s prosperity. Downtown Memphis Commission chief Terence Patterson wants people to walk places without feeling disturbed by blighted, empty buildings, and a general lack of vibrancy. Patterson says:
“Our highest priority area over the next few years will be the Downtown core. Our goal is to offer a safe, welcoming walk between the Convention Center and Beale Street and throughout the entire Downtown core. So we’ll be aggressively addressing blighted buildings and underused land to turn those into exciting development opportunities.”
The commission’s new brand, “Downtown is the Soul of the City”, envisions an energized city center with entertainment, food, and retail establishments offering 24/7/365 venues. The Downtown Memphis Commission has made reinvigorating the city center the agency’s top priority, followed closely by supporting areas that are booming or poised to boom.
However, this construction and expansion growth isn’t limited to big development. Smaller investors shouldn’t be left out as the big guys take advantage of the Memphis commercial real estate market. Plenty of smaller but highly viable opportunities are available across the city as revitalization continuous.
The Downtown’s central business improvement district and nearby neighborhoods encompass 28,000 residents, 63,000 employees, and six million tourists a year. More than $4 billion in investment is planned or underway in the area between the Wolf River on the north, Crump on the south and Danny Thomas on the east, plus the Medical District and Mud Island. The core area is A.W. Willis to Dr. Martin Luther King Jr., west of Danny Thomas.
These plans aren’t only for the big boulevards and big businesses. The commission wants to see opportunity and expansion include smaller business on the side streets and alleys.
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Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for 10 years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. With the Pacific Ocean a couple of miles in the opposite direction.